• CHI CB, CHI CSRC and CHI SAFE issued a joint notice on further facilitating foreign institutional investors to invest in China's bond market, to open up the bond market.
• Follows September 2020, CHI CB, CHI SAFE proposed rules re foreign investors.

Foreign Investment

• Supports foreign institutional investors in investing in the exchange bond market directly or through Bond Connect, and to choose trading venues independently.
• Foreign institutional investors can choose a bond registration and settlement institution or domestic custodian bank to provide bond custody services according to their needs.
• Scope of foreign institutional investors allowed to enter the market has not changed.
• Procedures are simplified, scope of investment extended to exchange bond market.
• Domestic custodian banks shall provide services to foreign institutional investors in compliance with laws and regulations; ensure property under custody is kept separate.
• Regulations will unify the cross-border management policies of foreign institutional investors' funds, and integrate existing foreign exchange management requirements.

Effectiveness

• The notice will come into effect on 30 June 2022.